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04-10-2006 VC SP-MMINUTES OF THE SPECIAL JOINT MEETING • VILLAGE COUNCIL AND COUNTRY CLUB ADVISORY BOARD OF NORTH PALM BEACH, FLORIDA APRIL 10, 2006 Village Council David B. Norris, Mayor Dr. Edward M. Eissey, Vice Mayor William Manuel, President Pro Tem Charles R. O'Meilia, Councilman Manny Grinn, Councilman Mark Bates, Village Manager George Baldwin, Village Attorney Melissa Teal, CMC, Village Clerk Country Club Advisory Board Lou Piccioli, Chairman Sandy Finck, Secretary John Archetti, Member Jim Bender, Member Joseph O'Hagan, Member Rosemary Truesdell, Member ROLL CALL All members of Council were present. All members of the Country Club Advisory Board were present. All members of star were present. The Village Council and Country Club Advisory Board observed a moment of silence in memory of Greg Karambelas, Country Club Advisory Board member who recently passed away. COUNTRY CLUB GOLF COURSE RENOVATION PROJECT Village Manager Mark Bates announced that in preparation for a decision on the golf course renovation, the joint meeting is so that the Village Council may obtain final input and questions and answers from the Country Club Advisory Board and to allow members of the public to share their ideas, questions, and concerns about the project. Mr. Bates reported that construction bid proposals for renovation of the golf course were received on 3/15/06, and Nicklaus Design, Village Administration, and the low bidder, Quality Grassing, have met to discuss ways to refine, enhance and reduce the price of the project. Mr. Bates advised that a final contract will be presented to the Village Council on 4/13/06. Paul Stringer, Senior Vice President of Business Development for Nicklaus Design Group, addressed the Council and Country Club Advisory Board regarding redesign of the golf course. Village Project Manager Charles Cangianelli gave an update on the irrigation system and water usage, and advised that the pipe from the Earman River is large enough to handle the volume. Mr. Bates reviewed the impact of the hurricanes on other golf course undergoing renovation at that time. Mr. Bates advised that our present insurance policy does not include business interruption insurance. Mr. Bates discussed the risk exposure for a storm event during the period • of grass grow-in and the cost of insurance to cover that contingency. Mr. Bates reported that the estimated premium for that insurance would be $150,000 to $180,000, and noted that none of the surrounding courses who considered this during their renovation opted for that coverage. MINUTES OF SPECIAL JOINT MEETING VILLAGE COUNCIL AND COUNTRY CLUB ADVISORY BOARD HELD APRIL 10, 2006 • Mr. Bates noted that based on staff recommendations and discussions with Nicklaus Design and Quality Grassing, the total contract price has dropped from $4.4 million to $3.8 million. Discussion took place concerning the type and extent of cart paths. Mr. Bates reviewed the debt coverage and noted that as the project progresses, consideration could be given to expanding the cart paths and landscaping. Country Club Advisory Board Chairman, Lou Piccioli, reviewed the history of this issue and ranking of the design firms by the Country Club Advisory Board and ad hoc committee. Mr. Bates advised that the financial budget reflects a 10% increase in revenue for the entire club, not a 10% increase in fees. Mr. Bates noted that how the revenue goal is achieved will be up to the Council and Country Club Advisory Board during the upcoming budgeting process. A discussion of the greens with regard to onsite versus offsite sand took place. Mr. Stringer briefly reviewed maintenance needs of types of grass. Discussion was held regarding the length of the course as it now exists and as proposed. Discussion took place concerning the price for FPL to run power underground. 1VIr. Bates reviewed the total loan amount of $4;893;673, and advised that increasing the linear feet of cart paths would increase the cost by approximately $150,000 to $5.05 million. Consensus of Council was to go with the staff recommendation on limited cart paths. RANKING OF GOLF COURSE RESTORATION BIDS Vice Mayor Eissey moved to rank golf course construction renovation bid proposals of Quality Grassing as #1 and Wadsworth Golf as #2, and direct Administration and Village Attorney to prepare final contract documents with top ranked firm for Council consideration. President Pro Tem Manuel seconded the motion. During discussion, it was clarified that the final contract will be a unit price contract. Discussion ensued on arbitration. Mr. Baldwin advised that the arbitration clause was in the contract in the bid specifications, however it can be deleted if the contractor agrees. Thereafter, the motion passed unanimously. RANKING OF BANK QUALIFIED BID PROPOSALS Vice Mayor Eissey moved to approve ranking of bank qualified loan bid proposals and direct Administration, Financial Advisor and Village Loan Counsel to prepare loan documents with top ranked financial institution for Council consideration. President Pro Tem Manuel seconded the motion. Discussion took place concerning negotiation of the bank loan. Mr. Bates reported that • the Village's financial advisor felt that the proposal from Bank of America represented the best rate obtainable. Discussion took place concerning the interest rate. 2 MINUTES OF SPECIAL JOINT MEETING VILLAGE COUNCIL AND COUNTRY CLUB ADVISORY BOARD HELD APRIL 10, 2006 • Councilman Grinn moved to table this item until April 13, 2006. President Pro Tem Manuel seconded the motion, which failed 2 - 3, with Councilman Grinn and President Pro Tem Manuel voting aye, and Councilman O'Meilia, Vice Mayor Eissey, and Mayor Norris opposed. Discussion ensued on the security for the loan. Mr. Bates reported that the loan documents will require repayment of the loan to be budgeted each year in the Country Club Budget, as the primary repayment, along with a covenant to budget and appropriate from the General Fund Budget as a secondary guarantee of the loan. Council asked Mr. Bates to verify with the bank the meaning of the language regarding security. Discussion took place on the amount of the loan, and prepayment penalty. Mr. Bates noted that the recommendation is for an 18 year loan. Vice Mayor Eissey left the meeting at 9:22 p.m. Thereafter, the motion passed 4 - 0, with Councilman Grinn, Councilman O'Meilia, President Pro Tem Manuel, and Mayor Norris in favor. Mayor Eissey returned to the meeting. ADJOURNMENT With no further business to come before the Council, the meeting adjourned at 9:25 p.m. %~~~ T~~~~~~ Melissa Teal, CMC, Village Clerk • 3